Finance
A Missouri buyer with a 680 credit score applies for a conventional mortgage. Compared to a buyer with a 780 score, the 680 score buyer will likely pay:
AThe same interest rate
BA higher interest rate and/or higher loan-level price adjustments (LLPAs)✓ Correct
CA lower interest rate
DNo fees
Explanation
Lower credit scores result in higher mortgage interest rates and/or risk-based loan-level price adjustments (LLPAs) charged by Fannie Mae/Freddie Mac, increasing the borrower's cost.
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